“I am surprised. This is quite extraordinary,” said Stephen Jen, co-founder of hedge fund SLJ Macro Partners. Mr. Jen never understood why the market doubted the BOJ’s resolve to ease aggressively, but he didn’t predict this collapse in European yields.
“The Fed is always seen as the more important central bank to watch for the implications of its policy on global markets,” Mr. Jen said. Now the BOJ is clearly joining that club.